Bureaucratic organizations are typically complex structures with many departments and divisions that are administered by lots of people.

These kinds of organizations are a product of decentralization.   Focus areas or silo’s of expertise are created.  This results in multiple groups each with a very narrow focus, which can be easier to oversee but suffers from lack of integration.

Division of Labor

A side effect of creating specializations and divisions of labor is turf wars and acting in self-interest.   The central areas which govern the whole often end up participating in political skirmishes both between silos and with themselves directly.

Centralization can result in a diminishing focus, which can affect the overall quality, but will almost also increase efficiency resulting in quicker turnaround with fewer hoops to jump through.

Centralization

Centralizing functions within large complex organizations is often a change strongly resisted by the organization’s stakeholders.    This change can dramatically affect the accountability and control of de-centralized areas.

Moving to a more centralized structure does need to be done with caution.  The potential for passive-aggressive resistance must be both recognized and planned for.

Solidly entrenched positions can be torn asunder and the incumbents are likely to become roadblocks without working collaboratively to overcome this.

Motivation

From the start of any centralization exercise, it is critical to highlight the value of reducing the bureaucracy together with associated personal benefits (i.e., what does it mean to me).

Working carefully consulting throughout with all impacted stakeholders restructuring and organization can improve it’s ability to accomplish its goal.  If the change is simply rammed through though the results can be catatrosophic.